Status: DEVELOPINGApr 17, 2025, 2:12 PM

U.S. Tariffs Threaten Survival of Centuries-Old Kashmiri Carpet Industry, Impacting Artisans and Trade

28% U.S. tariff raises prices in America without benefiting Kashmiri weavers, risking cultural heritage amid India-Pakistan tensions

Location: Srinagar, India

Event Type: Economic | Confidence: 90%

Key Developments

U.S. imposed a 28% tariff on Kashmiri carpet imports, increasing prices for American consumers.
Tariffs have made exports to the U.S. more expensive, threatening the survival of traditional artisans in Kashmir.
Reduced demand due to tariffs and competition from machine-made carpets is causing artisans to abandon the craft.
Carpet exports from India to the U.S. are valued at approximately $1.2 billion, a significant share of the $2 billion global market.
The Kashmiri carpet industry has endured decades of India-Pakistan conflict but now faces economic threats from international trade policies.

The tariffs exacerbate economic challenges in a region already strained by India-Pakistan tensions.

The U.S. trade policy impacts traditional industries in sensitive geopolitical areas, potentially influencing bilateral relations.

Potential strain on U.S.-India trade relations amid sensitive regional dynamics.

Risk of cultural heritage loss could prompt calls for diplomatic engagement to mitigate economic damage.

Decline in artisan incomes due to reduced orders threatens livelihoods and cultural heritage.

Loss of the centuries-old craft risks cultural erosion in Kashmir.

Implemented 28% tariffs on Kashmiri carpets

Role: Trade policy maker

Credibility: High

Facing economic hardship due to tariffs

Role: Producers of traditional carpets

Credibility: High

U.S. government rationale: Tariffs intended to protect domestic industries but have unintended consequences on foreign artisans.

Bias Assessment: Focuses on economic protectionism, may overlook cultural impacts.

Kashmiri artisans and industry advocates: Highlight economic hardship and cultural loss due to tariffs and competition.

Bias Assessment: Emphasizes humanitarian and cultural preservation concerns.